Thursday, December 8

Crypto assets aspire to 50 billion dollars of capitalization

Crypto assets have revolutionized the market in recent years, making terms related to their ecosystem, such as blockchain technology, cryptocurrencies, NFTs or digital wallets become a substantial part of investors’ day-to-day activities.

With this growth have come some record records such as the maximum historical bitcoin market capitalization of 1.27 billion dollars reached last November, or the peak of total capitalization of cryptocurrencies set at 2.87 billion dollars.

These figures have been reduced considerably in the last month and a half, mainly due to a bitcoin crash that is dragging down much of the crypto market, but according to the always optimistic Cathie Wood and her investment fund Ark Invest, this correction is just a bump in the road to a very significant expansion.

According to the forecasts made in its “Great Ideas of 2022” report, when the calendar marks the beginning of 2030, crypto assets will bring together almost 50 billion dollars in market capitalization.

Crypto assets as part of the technological industrial revolution

Cathie Wood’s investment fund did not have its best year in 2021, accumulating losses that have increased this week after the cut in Tesla shares.

Alejandro Zala, national director of Bitpanda in Spain, in fact, details that the total cryptocurrency market capitalization “is now at its lowest point in six months, having plunged to levels last seen in the summer.”

Wood, however, shows no signs of wanting to change his view of the market, and in the report made by his investment fund he makes considerably bullish predictions for the next decade.

“We believe that historians will remember this time as one of unprecedented technological advancement, and say: that was the moment that everything changed,” reads their report.

And under that premise, he predicts that in 2030 the “non-innovative” industry will have a market capitalization of 126 trillion dollars, while the combination of companies pioneering artificial intelligence, robotics, battery technology, blockchain technology and crypto assets or of sequencing of genomes will accumulate about 210 billion dollars.

Bitcoin and ether will continue to set the pace

In this context, the report Ark Invest highlights several elements of crypto assets that will help drive this projection of their market capitalization, such as a bitcoin price that is still confident of hitting $1 million by 2030.

To endorse this statement, the forecast report is based on data such as the fact that the accumulated volume of bitcoin transfers “increased 463 percent in 2021”, or that the annual settlement volume of the bitcoin network has exceeded the volume of payments of Visa, as well as the fact that “the institutional holder base in bitcoin appears to be expanding following the launch of more regulated products and adoption by companies and nation states.”

Ark Invest, however, he does not forget an ether that he predicts will consolidate both as the preferred collateral asset of decentralized finance, as well as the cryptocurrency of exchange in the markets of NFT, “suggesting that the cryptocurrency is likely to capture a large portion of the $123 trillion global money supply.”

According to the forecast made by the firm of WoodTherefore, the market capitalization of ether could exceed 20 billion dollars in the next 10 years, causing the Ethereum network “to displace many traditional financial services, and its native token, ether, to compete (with other currencies). like global money.

The role of NFTs in the metaverse is intuited crucial

Much of this acceleration in the crypto asset market, Ark Invest argues in its report, will be driven by the digitization of a society that will inexorably pivot towards web 3.0 and the metaverse, causing interest in digital property to accelerate.

“We believe that virtual ecosystems of web 3.0 will prosper if users can own -rather than use or rent- digital assets”, they explain from Ark Invest.

And in this turn towards digital possession, NFT they will play a crucial role, “blurring the line between consumption and investment.” In this sense, it should be noted that given the volatility that the crypto market has experienced in recent weeks, NFT they have remained impassive, offering yields that in some cases have reached up to 60 percent.